CNTY WACC - Weighted Average Cost of Capital

The WACC of Century Casinos Inc (CNTY) is 13.1%.

The Cost of Equity of Century Casinos Inc (CNTY) is 56.60%.

The Cost of Debt of Century Casinos Inc (CNTY) is 15.75%.

	Range	Selected
Cost of equity	31.90% - 81.30%	56.60%
Tax rate	22.30% - 22.60%	22.45%
Cost of debt	10.60% - 20.90%	15.75%
WACC	8.7% - 17.5%	13.1%

WACC

CNTY WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	6.09	13.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	31.90%	81.30%

Tax rate	22.30%	22.60%
Debt/Equity ratio	48.77	48.77
Cost of debt	10.60%	20.90%

After-tax WACC	8.7%	17.5%


Selected WACC	13.1%

CNTY's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for CNTY:

cost_of_equity (56.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (6.09) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.